eBay Considering PayPal Spinoff, Could Debut in 2015

Aug 22, 2014 05:40 PM EDT | Matt Mercuro

EBay is thinking about creating a spinoff of its payment unit PayPal, according to tech news website The Information, citing sources.

Shares of the online retailer jumped 4 percent to $55.48 at midday on Aug. 21.

EBay said to potential candidates for the position of PayPal chief executive officer, a post that David Marcus stepped down from back in June, about a possible spinoff of PayPal.

Marcus is now a Facebook executive, according to Reuters.

EBay CEO John Donahoe has resisted demands by activist investor Carl Icahn to separate the payments service, claiming PayPal was integral to eBay's business, and vice versa.

Donahoe believes that a split wouldn't make sense.

"The board will continue to assess all alternatives to create that long-term value and to enhance the growth and competitive positions of both eBay and PayPal. This position has not changed," eBay spokeswoman Amanda Miller said, according to Reuters.

EBay's decision whether to spin off all or part of the company, and what structure that could take, has not been revealed yet, according to The Information report.

Though Icahn has backed off from his demand in April, saying that he supported a PayPal split in the near future, he still feels that now is not the time.

Some investors feel an independent PayPal could grow by attracting online retailers wary of rival eBay, according to Reuters.

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